[38] Consolidated statement of cash flows
The consolidated statement of cash flows shows the changes in cash and cash equivalents in the KION Group resulting from cash inflows and outflows in the year under review, broken down into cash flow from operating, investing and financing activities. The effects on cash from changes in exchange rates are shown separately. Cash flow from operating activities is presented using the indirect method in which the profit or loss for the year is adjusted for non-cash operating items.
The KION Group’s net cash provided by operating activities totalled €765.5 million, which was significantly higher than the prior-year figure (2017: €711.9 million). This increase made up for the higher net working capital, the rise in the volume of rentals and leasing, and higher tax payments.
Net cash used for investing activities amounted to €245.6 million (2017: net cash used of €237.6 million). Cash payments for development (R&D) and for property, plant and equipment (excluding right-of-use assets related to procurement leases) amounted to €258.5 million (2017: €218.3 million).
Free cash flow – the sum of cash flow from operating activities and investing activities – improved to €519.9 million in the reporting period (2017: €474.3 million).
Net cash used for financing activities came to €514.5 million (2017: €568.5 million). While financial debt taken on during the year came to €1,811.7 million (2017: €2,425.3 million), repayments were higher at €2,042.6 million (2017: €3,340.0 million). Net cash of €40.4 million was also used for interest payments (2017: net cash used of €50.6 million). The costs of obtaining financing in the year under review amounted to €5.0 million (2017: €7.4 million). Payments made for interest portions and principal portions under procurement leases amounted to €114.0 million in the reporting year (2017: €109.0 million). The distribution of a dividend of €0.99 per share (2017: €0.80 per share) resulted in a cash outflow of €116.8 million (2017: €86.9 million), while the acquisition of 66,000 treasury shares (2017: 60,000 treasury shares) required an outflow of €3.6 million (2017: €4.3 million). Additional information for 2018 on the changes to liabilities arising from financing activities can be found in > TABLES 106 – 107.
Reconciliation of liabilities arising from financing activities 2018 |
106 |
||||
in € million |
|
|
Non-cash changes |
|
|
01/01/2018 |
Cash flows |
Foreign exchange movement |
Other changes |
31/12/2018 |
|
Non-current financial liabilities |
2,024.8 |
–200.0 |
8.0 |
–14.1 |
1,818.7 |
Current financial liabilities |
243.9 |
–30.9 |
–7.9 |
21.5 |
226.5 |
Liabilities from accrued interest |
14.5 |
–42.9 |
–0.0 |
43.7 |
15.2 |
Liabilities from procurement leases |
369.1 |
–114.0 |
–1.6 |
167.7 |
421.2 |
Total liabilities financial activities |
2,652.3 |
–387.8 |
–1.5 |
218.7 |
2,481.7 |
Reconciliation of liabilities arising from financing activities 2017 |
107 |
||||||
in € million |
|
|
Non-cash changes |
|
|||
01/01/2017 |
Cash flows |
Foreign exchange movement |
Other changes |
31/12/2017 |
|||
|
|||||||
Non-current financial liabilities |
2,889.1 |
–860.5 |
–0.5 |
–3.2 |
2,024.8 |
||
Current financial liabilities |
293.9 |
–54.2 |
–4.4 |
8.5 |
243.9 |
||
Liabilities from accrued interest |
12.4 |
–58.1 |
–0.0 |
60.3 |
14.5 |
||
Liabilities from procurement leases* |
283.6 |
–109.0 |
–0.4 |
194.9 |
369.1 |
||
Total liabilities financial activities |
3,478.9 |
–1,081.8 |
–5.3 |
260.5 |
2,652.3 |
||
Negative currency effects reduced cash and cash equivalents by €3.2 million (2017: €12.2 million). Overall, cash and cash equivalents increased only slightly year on year, from €173.2 million as at 31 December 2017 to €175.3 million as at 31 December 2018.